DDA extends deadline for housing scheme after poor response

File photoNEW DELHI: Delhi Development Authority has extended the deadline for the 2017 housing scheme by a month (till September 11) following poor response from the public. Sources said the land-owning agency has received close to 8,000 applications against the 12,072 flats which were up for sale.

“We have extended the date till September 11, as we have not received adequate number of applications,” said a senior DDA official.

Officials said the main reason for the poor response was that banks were not giving loans due to the forfeiture clause. DDA had introduced the forfeiture clause — penalty ranging from 25% to 100% — to ensure that only serious buyers applied under the scheme.

“Due to the clause, banks were not giving loans. But now we have relaxed the clause and are hopeful that this will make it easier for people to avail loans from banks,” said JP Agarwal, principal commissioner, land disposal and housing, DDA.

As per the old clause, no penalty was levied on the earnest money if an applicant withdrew before the date of the draw of lots. But after the draw they would have to pay a penalty ranging from 25% to 100%.

The land owning agency has now relaxed the clause. “Now, if a person withdraws within 15 days of the issue of the demand letter, there will be no penalty levied. For next 15 days, he/she will have to pay 10% penalty. The allottee will have to forfeit 50% of the earnest money if he/she withdraws within 90 days of the issue of demand letter,” added Agarwal.

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The draft allows district-level authorities, headed by the district magistrate, to seek exemption from public hearing while granting green clearance for sand mining in areas up to five hectares of land.

The court said it is the obligation of the government to protect its citizens who belong to middle class family and invested their hard earned money in buying flats but got cheated by builders and facing uncertainty.